LITHIA MOTORS INC (LAD) Fundamental Analysis & Valuation

NYSE:LAD • US5367971034

Current stock price

288.76 USD
+5.72 (+2.02%)
At close:
288.76 USD
0 (0%)
After Hours:

This LAD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. LAD Profitability Analysis

1.1 Basic Checks

  • LAD had positive earnings in the past year.
  • In the past year LAD had a positive cash flow from operations.
  • In the past 5 years LAD has always been profitable.
  • The reported operating cash flow has been mixed in the past 5 years: LAD reported negative operating cash flow in multiple years.
LAD Yearly Net Income VS EBIT VS OCF VS FCFLAD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B 1.5B

1.2 Ratios

  • LAD's Return On Assets of 3.26% is fine compared to the rest of the industry. LAD outperforms 62.60% of its industry peers.
  • LAD's Return On Equity of 12.41% is fine compared to the rest of the industry. LAD outperforms 69.92% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 5.16%, LAD is in line with its industry, outperforming 58.54% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for LAD is significantly below the industry average of 13.58%.
Industry RankSector Rank
ROA 3.26%
ROE 12.41%
ROIC 5.16%
ROA(3y)3.94%
ROA(5y)5.93%
ROE(3y)13.5%
ROE(5y)17.49%
ROIC(3y)5.89%
ROIC(5y)8.14%
LAD Yearly ROA, ROE, ROICLAD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • With a decent Profit Margin value of 2.18%, LAD is doing good in the industry, outperforming 60.98% of the companies in the same industry.
  • In the last couple of years the Profit Margin of LAD has declined.
  • LAD has a better Operating Margin (4.26%) than 66.67% of its industry peers.
  • In the last couple of years the Operating Margin of LAD has declined.
  • With a Gross Margin value of 15.43%, LAD is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
  • LAD's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 4.26%
PM (TTM) 2.18%
GM 15.43%
OM growth 3Y-14.02%
OM growth 5Y-4.11%
PM growth 3Y-21.12%
PM growth 5Y-9.47%
GM growth 3Y-5.46%
GM growth 5Y-1.87%
LAD Yearly Profit, Operating, Gross MarginsLAD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. LAD Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LAD is destroying value.
  • Compared to 1 year ago, LAD has less shares outstanding
  • LAD has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, LAD has a worse debt to assets ratio.
LAD Yearly Shares OutstandingLAD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M 25M
LAD Yearly Total Debt VS Total AssetsLAD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • An Altman-Z score of 2.35 indicates that LAD is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • LAD's Altman-Z score of 2.35 is in line compared to the rest of the industry. LAD outperforms 51.22% of its industry peers.
  • LAD has a debt to FCF ratio of 2555.50. This is a negative value and a sign of low solvency as LAD would need 2555.50 years to pay back of all of its debts.
  • LAD has a worse Debt to FCF ratio (2555.50) than 62.60% of its industry peers.
  • A Debt/Equity ratio of 2.22 is on the high side and indicates that LAD has dependencies on debt financing.
  • With a Debt to Equity ratio value of 2.22, LAD is not doing good in the industry: 69.11% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.22
Debt/FCF 2555.5
Altman-Z 2.35
ROIC/WACC0.86
WACC6.01%
LAD Yearly LT Debt VS Equity VS FCFLAD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • LAD has a Current Ratio of 1.17. This is a normal value and indicates that LAD is financially healthy and should not expect problems in meeting its short term obligations.
  • LAD has a worse Current ratio (1.17) than 62.60% of its industry peers.
  • A Quick Ratio of 0.26 indicates that LAD may have some problems paying its short term obligations.
  • The Quick ratio of LAD (0.26) is worse than 81.30% of its industry peers.
Industry RankSector Rank
Current Ratio 1.17
Quick Ratio 0.26
LAD Yearly Current Assets VS Current LiabilitesLAD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. LAD Growth Analysis

3.1 Past

  • LAD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.88%, which is quite good.
  • LAD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.56% yearly.
  • The Revenue has been growing slightly by 4.00% in the past year.
  • LAD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.45% yearly.
EPS 1Y (TTM)13.88%
EPS 3Y-8.3%
EPS 5Y13.56%
EPS Q2Q%-13.48%
Revenue 1Y (TTM)4%
Revenue growth 3Y10.11%
Revenue growth 5Y23.45%
Sales Q2Q%-0.26%

3.2 Future

  • Based on estimates for the next years, LAD will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.23% on average per year.
  • Based on estimates for the next years, LAD will show a small growth in Revenue. The Revenue will grow by 5.13% on average per year.
EPS Next Y4.28%
EPS Next 2Y10.02%
EPS Next 3Y10.29%
EPS Next 5Y14.23%
Revenue Next Year2.79%
Revenue Next 2Y3.48%
Revenue Next 3Y4.72%
Revenue Next 5Y5.13%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
LAD Yearly Revenue VS EstimatesLAD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B
LAD Yearly EPS VS EstimatesLAD Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20 40 60

More info and screens

Find the best growth stocksShow best growing peers

5

4. LAD Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 8.46, the valuation of LAD can be described as reasonable.
  • Compared to the rest of the industry, the Price/Earnings ratio of LAD indicates a rather cheap valuation: LAD is cheaper than 93.50% of the companies listed in the same industry.
  • LAD is valuated cheaply when we compare the Price/Earnings ratio to 27.95, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 8.11, the valuation of LAD can be described as very reasonable.
  • Based on the Price/Forward Earnings ratio, LAD is valued cheaper than 94.31% of the companies in the same industry.
  • LAD is valuated cheaply when we compare the Price/Forward Earnings ratio to 38.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.46
Fwd PE 8.11
LAD Price Earnings VS Forward Price EarningsLAD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • LAD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LAD is cheaper than 66.67% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, LAD is valued a bit more expensive than 61.79% of the companies in the same industry.
Industry RankSector Rank
P/FCF 1160.02
EV/EBITDA 8.52
LAD Per share dataLAD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 500 1K 1.5K

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LAD does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.98
PEG (5Y)0.62
EPS Next 2Y10.02%
EPS Next 3Y10.29%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. LAD Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.80%, LAD is not a good candidate for dividend investing.
  • LAD's Dividend Yield is a higher than the industry average which is at 3.35.
  • Compared to an average S&P500 Dividend Yield of 1.81, LAD's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.8%

5.2 History

  • On average, the dividend of LAD grows each year by 13.75%, which is quite nice.
  • LAD has paid a dividend for at least 10 years, which is a reliable track record.
  • LAD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.75%
Div Incr Years12
Div Non Decr Years12
LAD Yearly Dividends per shareLAD Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • 6.75% of the earnings are spent on dividend by LAD. This is a low number and sustainable payout ratio.
  • LAD's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP6.75%
EPS Next 2Y10.02%
EPS Next 3Y10.29%
LAD Yearly Income VS Free CF VS DividendLAD Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B 1.5B
LAD Dividend Payout.LAD Dividend Payout, showing the Payout Ratio.LAD Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

LAD Fundamentals: All Metrics, Ratios and Statistics

LITHIA MOTORS INC

NYSE:LAD (4/20/2026, 8:12:58 PM)

After market: 288.76 0 (0%)

288.76

+5.72 (+2.02%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-11
Earnings (Next)04-29
Inst Owners105.08%
Inst Owner Change0.04%
Ins Owners1.09%
Ins Owner Change8.69%
Market Cap6.73B
Revenue(TTM)37.63B
Net Income(TTM)819.60M
Analysts82
Price Target380.63 (31.82%)
Short Float %10.27%
Short Ratio6.59
Dividend
Industry RankSector Rank
Dividend Yield 0.8%
Yearly Dividend2.22
Dividend Growth(5Y)13.75%
DP6.75%
Div Incr Years12
Div Non Decr Years12
Ex-Date03-06
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.65%
Min EPS beat(2)-17.73%
Max EPS beat(2)10.43%
EPS beat(4)2
Avg EPS beat(4)0.21%
Min EPS beat(4)-17.73%
Max EPS beat(4)10.43%
EPS beat(8)5
Avg EPS beat(8)0.24%
EPS beat(12)6
Avg EPS beat(12)0.31%
EPS beat(16)7
Avg EPS beat(16)0.15%
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-0.9%
Max Revenue beat(2)1.29%
Revenue beat(4)1
Avg Revenue beat(4)-1%
Min Revenue beat(4)-2.33%
Max Revenue beat(4)1.29%
Revenue beat(8)2
Avg Revenue beat(8)-1.35%
Revenue beat(12)3
Avg Revenue beat(12)-1.62%
Revenue beat(16)4
Avg Revenue beat(16)-1.24%
PT rev (1m)-5.72%
PT rev (3m)-5.57%
EPS NQ rev (1m)-13.8%
EPS NQ rev (3m)-20.89%
EPS NY rev (1m)-3.84%
EPS NY rev (3m)-7.32%
Revenue NQ rev (1m)-1.55%
Revenue NQ rev (3m)-2.58%
Revenue NY rev (1m)-0.91%
Revenue NY rev (3m)-1.85%
Valuation
Industry RankSector Rank
PE 8.46
Fwd PE 8.11
P/S 0.18
P/FCF 1160.02
P/OCF 18.86
P/B 1.02
P/tB 4.99
EV/EBITDA 8.52
EPS(TTM)34.14
EY11.82%
EPS(NY)35.6
Fwd EY12.33%
FCF(TTM)0.25
FCFY0.09%
OCF(TTM)15.31
OCFY5.3%
SpS1615.23
BVpS283.4
TBVpS57.9
PEG (NY)1.98
PEG (5Y)0.62
Graham Number466.576 (61.58%)
Profitability
Industry RankSector Rank
ROA 3.26%
ROE 12.41%
ROCE 8.71%
ROIC 5.16%
ROICexc 5.19%
ROICexgc 6.69%
OM 4.26%
PM (TTM) 2.18%
GM 15.43%
FCFM 0.02%
ROA(3y)3.94%
ROA(5y)5.93%
ROE(3y)13.5%
ROE(5y)17.49%
ROIC(3y)5.89%
ROIC(5y)8.14%
ROICexc(3y)6.06%
ROICexc(5y)8.32%
ROICexgc(3y)7.91%
ROICexgc(5y)10.68%
ROCE(3y)9.93%
ROCE(5y)13.01%
ROICexgc growth 3Y-21.27%
ROICexgc growth 5Y-4.67%
ROICexc growth 3Y-20.69%
ROICexc growth 5Y-6.78%
OM growth 3Y-14.02%
OM growth 5Y-4.11%
PM growth 3Y-21.12%
PM growth 5Y-9.47%
GM growth 3Y-5.46%
GM growth 5Y-1.87%
F-Score4
Asset Turnover1.5
Health
Industry RankSector Rank
Debt/Equity 2.22
Debt/FCF 2555.5
Debt/EBITDA 7.62
Cap/Depr 108.44%
Cap/Sales 0.93%
Interest Coverage 2.26
Cash Conversion 18.51%
Profit Quality 0.71%
Current Ratio 1.17
Quick Ratio 0.26
Altman-Z 2.35
F-Score4
WACC6.01%
ROIC/WACC0.86
Cap/Depr(3y)113.41%
Cap/Depr(5y)144.06%
Cap/Sales(3y)0.88%
Cap/Sales(5y)0.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.88%
EPS 3Y-8.3%
EPS 5Y13.56%
EPS Q2Q%-13.48%
EPS Next Y4.28%
EPS Next 2Y10.02%
EPS Next 3Y10.29%
EPS Next 5Y14.23%
Revenue 1Y (TTM)4%
Revenue growth 3Y10.11%
Revenue growth 5Y23.45%
Sales Q2Q%-0.26%
Revenue Next Year2.79%
Revenue Next 2Y3.48%
Revenue Next 3Y4.72%
Revenue Next 5Y5.13%
EBIT growth 1Y0.55%
EBIT growth 3Y-5.32%
EBIT growth 5Y18.38%
EBIT Next Year7.51%
EBIT Next 3Y9.39%
EBIT Next 5Y10.36%
FCF growth 1Y-92.13%
FCF growth 3YN/A
FCF growth 5Y-56.55%
OCF growth 1Y-16.09%
OCF growth 3YN/A
OCF growth 5Y-8.04%

LITHIA MOTORS INC / LAD Fundamental Analysis FAQ

What is the fundamental rating for LAD stock?

ChartMill assigns a fundamental rating of 4 / 10 to LAD.


Can you provide the valuation status for LITHIA MOTORS INC?

ChartMill assigns a valuation rating of 5 / 10 to LITHIA MOTORS INC (LAD). This can be considered as Fairly Valued.


Can you provide the profitability details for LITHIA MOTORS INC?

LITHIA MOTORS INC (LAD) has a profitability rating of 4 / 10.


Can you provide the PE and PB ratios for LAD stock?

The Price/Earnings (PE) ratio for LITHIA MOTORS INC (LAD) is 8.46 and the Price/Book (PB) ratio is 1.02.


What is the financial health of LITHIA MOTORS INC (LAD) stock?

The financial health rating of LITHIA MOTORS INC (LAD) is 2 / 10.